Norges Bank forecasts modest growth in Norway's private consumption in 2016

Norway's retail sales fell in August. These figures are volatile, but looking at the trend over the summer the trend seems to be flattening. Retail sales came out at -0,4 % m/m in August after 0,6 % in July.

The figure confirms the view of a flattening trend in retail sales. Growth in retail sales seems to have slowed after solid growth in the first part of the year and the current trend looks to be only slightly upwards.

The consumption of goods indicator, which also includes electricity and purchases of vehicles, confirms to some extend the flattening trend. However, the consumption of goods indicator indicates somewhat stronger growth. Purchases of vehicles has been growing especially strong.

"Norges Bank forecast rather modest growth in private consumption the coming year, and consequently it will not change view significantly despite today's rather weak figure for consumption of goods. This is supported by the relatively healthy growth in consumption of services the last year", says Nordea Bank.